Is selling firewood a good business? Here is a guide on selling kindling wood.
Kindling, an easily combustible material, is small scrap wood, which you can use to start up a fire. You will notice that when the weather turns cold, people start looking for means to keep warm.
This is a great business opportunity if you have access to logs of wood for setting up fires.
Make Money Selling Kindling Wood
Selling kindling, as easy as it may seem, has its own challenges as well.
This includes getting inventory and cutting to a preferred size as desired by your consumers because not everyone can just grab a chainsaw and start cutting down trees.
Firewood business can be very labor-intensive. However, access to excess firewood is a great business opportunity.
Take advantage of the fact that you can easily and quickly provide the firewood, fastened together for convenient handling, in the exact shape and size that customers and resellers want.
Sourcing Kindling to Sell
Do you hope to sell kindling for money?
If your answer is yes, then this article will help in your new business. First, you will need a very reliable and continuous source of firewood to avoid disappointing your customers.
There are so many companies that specialize in tree removal. Your best bet to get at least two or more of them that will be your faithful and constant suppliers.
If you however want to source the wood yourself, you will need the knowledge of proper tools and equipment necessary for cutting down the trees and a good transport system.
You will also require axes, a bucksaw, a good gas-powered chainsaw, and a heavy-duty trailer for hauling it.
You will need to conduct deliberate research in your area to determine the types of wood that are in high demand, including the most preferred species by your prospective customers.
You may also impact your business by knowing the various species of wood there are, as customers might be sometimes specific on the species of wood they prefer.
Setting Up Your Kindling Price
Sourcing your product might seem to be the most challenging task in this line of business. However, once that is done, setting up and bundling comes next, which is the determinant of pricing.
After bundling your product, you are required to prepare a rate sheet that contains in detail the prices of your commodities based on their shapes and sizes.
The rate sheet is prepared and handed to customers who demand to know the price tag of your various bundles of products.
More importantly, you should pay close attention to your customer demand.
This is because, before you put up your firewood for sale, you need to consider the purpose for which individual customers tend to patronize you as it may vary according to demands; that is either for fire pits or fireplaces.
This will help you determine the specific size and bundle to offer upon request.
Setting up your product prices is totally dependent on how and to whom you are selling your firewood. That is, selling to individuals, retailers, parks and campgrounds, and or processing companies.
To appeal to patronage by local stores, campgrounds, and other customers, a moderate and considerable price tag is advised, as there are off-takers who tend to buy in bulk,
Also, you keeping a good customer relationship is a sure bet to gain their loyalty and patronage.
This category of customers is the easiest to acquire, though it is considered to have the lowest profit margin.
With a small delivery area, prices in this category range between $175 -$225 per chord or bundle.
Sell to your neighbors or immediate community who usually buys in small quantity or just enough for a stipulated period of time.
Parks and Camp Grounds
You can create a steady and easy business rapport, if you have nearby campgrounds and parks, basically by supplying your firewood bundles directly to them. However, you will have to keep a steady supply on demand, or the downside is they will take their business elsewhere.
Making a profit is almost guaranteed here as parks and campgrounds tend to pay generously to retain clients and keep their customers warm and happy.
They usually buy in large quantities as they routinely use it to make large campfires. So expect to get a large profit margin from this category of customers.
You will discover that this category of customers is by far the most reliable source of regular income and profit for your kindling business.
They also want to make profits as well, so they try their best to get your prices as low as possible. This is to ensure that they resell for a reasonable amount and achieve profit maximization.
You should however bear in mind that their doing so, will in no particular way, pose a threat to your business income or profit margin.
A firewood processing company could be your great source to making money, without needing access to supply.
You will reckon there are sellers, who may be interested in profit, without necessarily investing in the tools, or equipment needed to process and bundle their firewood.
You will also agree that just as it is with many businesses, the firewood business, isn’t without its risks.
There are some wood that you will find out retains moisture when you cut them. Such wood will then need to be air-dried for some time before it is said to be fit for sale.
This situation poses a threat of losing customers as it takes a longer period of time for the wood to be considered fit for sale. Note that where you store up your wood, while it dries, is very important.
A well-ventilated space, away from moisture is mostly advised.
Termites and wood borers significantly reduce the volume of the wood you have collected. Therefore, you wouldn’t want to keep your collected wood outside for too long.
To keep away and safe from moisture and other damaging insects, you will agree that an interior area is highly suitable for storing your wood.
With this information, I believe you should find selling kindling easy and profitable.
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